I. Current Status: Market Expansion Driven by Technology
Block silicone oil (especially ternary copolymer block silicone oil), with its unique molecular structure design, has demonstrated irreplaceable performance advantages in textiles, cosmetics, electronic packaging, and new energy fields. Global production capacity exceeded 126,000 tons in 2025, with an average annual compound growth rate of 9.1%. China contributed more than 60% of the new global capacity, becoming the world's largest producer. Domestic companies such as Xin'an Group and Hesheng Silicon Industry have achieved domestic substitution of mid-to-high-end products through technological breakthroughs. In 2025, domestic production capacity reached 43,000 tons, with a production volume of 49,000 tons, and a capacity utilization rate of approximately 84%.

From the application perspective, the textile industry remains the largest consumer, accounting for about 42%. Benefiting from the upgrading of functional fabrics, the demand for high-stability, low-yellowing silicone oil has increased significantly. The cosmetics sector is the fastest-growing, with demand increasing to 28% in 2025. High-end skincare formulations are driving product development towards high purity and low irritation. The electronics and new energy sectors together account for 22%, becoming emerging growth poles. For example, in new energy battery packaging, block silicone oil is used as a thermal interface material, with demand increasing by 35% year-on-year in 2025.

II. Future Prospects: Green and Functional Development Leading New Growth
In the next five years, the global block silicone oil market is expected to expand at an average annual rate of 10.3%, with demand exceeding 208,000 tons by 2030, and the Chinese market size exceeding 8 billion RMB. The industry will show three major trends: technological upgrading, with green processes such as rare earth catalysis and solvent-free continuous production gradually becoming industrialized, driving products towards low VOC and biodegradable directions; application expansion, with new energy battery thermal management, functional finishing of smart textiles, and high-end skincare active carriers becoming core growth points; and market optimization, where companies with full-产业链 integration capabilities and green manufacturing certifications will dominate the competition. It is expected that the self-sufficiency rate of high-end products in China will increase to over 85% by 2030.